Option

Definition

Option. A financial derivative which represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date).

Options may be created Over the Counter, or through an Exchange (in which case the Option Holder may transfer the Option to another party).

See Also

• ISO 10962, Securities and related financial instruments - Classification of Financial Instruments (CFI code), Second edition, 2001-05-01.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.